GAP protection covers the scenario where a motor vehicle is totaled in an accident or stolen and not recovered. Insurance will pay for the retail value of the car minus the deductible. If that is not enough to pay the car loan, the consumer is responsible for the...
Month: February 2014
Games Dealers Play: Inflating the Down Payment
When we evaluate a potential client's contract documents, we always check to see whether the contract accurately shows the amount paid as a down payment. A few weeks ago, we discussed the problem of some car dealerships not crediting the full down payment to a vehicle...
Games Dealers Play: Refusing to Refund the Deposit
. Some car dealerships can be quite aggressive when it comes to asking for a deposit on a car, and consumers are often persuaded to pay hundreds or even thousands of dollars as a deposit. Some salesmen will say that the deposit is necessary to “hold” the car, claiming...
Odometer “rollbacks” are often part of a bigger picture
The types of fraud that an auto dealership could commit are limited only by the fraudster's imagination. Many times, a multifaceted approach is used that incorporates a variety of methods. Odometer rollbacks are a common fraud in the used car market. Manipulating the...
Are you just unlucky with your car, or were you tricked?
When you buy a car, you know that it’s going to break down at some point. It’s going to need repairs. All vehicles do. This is just a given, and many people specifically budget for these future needs. However, you also expect it to last for a certain amount of time...
Vehicle history checks should consider recent flooding
Connecticut and states across the entire U.S. were negatively impacted by the recent massive storms and tornados. Damaged property was a major problem and a significant portion of that was inflicted on vehicles because of widespread flooding. Water damage can severely...
What to do if you’re a victim of auto dealer fraud
Purchasing a car is a major deal for most Connecticut residents. Cars cost thousands of dollars and it can be nerve wracking to go to a dealership, pick out a car, negotiate a price, and obtain financing. Car dealerships are full of notoriously shady characters and a...
Can a dealership just paint over major rust damage?
Winter weather, road salt and age can all contribute to the amount of rust that develops on a vehicle. Rust is unattractive, but it is far from just a cosmetic issue. Substantial amounts of rust on a vehicle can impact its structural integrity in the event of a crash....
What’s a straw purchase dealer scam?
Imagine this: You go to a dealership to buy a vehicle. You find one you like that is around $2,000 above your limit. You can’t finance it, so you decide that you should walk away and wait to get something else. Then, the dealer stops you. What if someone they know...
Auto dealer fraudster sentenced to prison for 60 months
Used car dealers and salesman are some of the most hated individuals in the U.S. This is mostly due to a pervasive idea that they are fraudsters, and this is why every state has laws against auto dealer fraud. Though, what some may not realize is that federal law also...
Avoiding online car buying scams
Readers of our blog are no stranger to car buying scams. Indeed, many of our blogs are devoted to auto dealer fraud, like last week’s blog. In that blog post, we described how some online “internet prices” were actually after an undisclosed down payment. And, after...
Be careful when shopping for a car online
When a Connecticut resident needs a new car chances are they will search the internet first before heading into the dealership. This can be a good way of checking prices, models, features, etc., but a recent article in PC Magazine highlights the deceptive nature of...
Don’t get burned by these three common types of auto fraud
Studies show that around 1 in 10 property/casualty insurance claims are fraudulent. In fact, insurance fraud is close behind tax evasion amongst some of the most pervasive white-collar crimes. This means that the likelihood of experiencing the outcome of such fraud is...